Greenwich, Conn. and Richmond, Va. - May 3, 2016 - XPO Logistics, Inc. (NYSE: XPO) ("XPO"), Estes Forwarding Worldwide LLC ("EFW") and Estes Express Lines ("Estes") today announced that they have jointly entered into a $13 million settlement agreement with the United States Department of Justice regarding a civil investigation of services provided during the Defense Transportation Coordination Initiative ("DTCI") program. XPO inherited the previously disclosed investigation when it acquired Con-way Inc., the parent company of Menlo Logistics, in October of 2015.
The settlement fully resolves disputed charges under the logistics contract. The companies strenuously denied that any wrongdoing occurred. Under the settlement, the allegations against XPO, EFW and Estes have been dismissed with prejudice, waived and released.
Gordon Devens, chief legal officer of XPO Logistics, said, "We are pleased with this settlement, which avoids the cost and distraction of litigation and provides clarity for our stakeholders. While the work was performed years before we acquired the Menlo operations, we believe that Menlo and its subcontractors, including EFW and Estes, provided their services in exemplary fashion - according to industry standards, commercial best practices and the terms of their contracts."
Scott Fisher, president and CEO of Estes Forwarding Worldwide LLC, said, "During the entire course of our performance under the DTCI program, we complied with the terms of our contracts and well-established industry standards. We proudly stand by the quality services we provided to the government and the integrity with which we delivered them. Today's settlement fully resolves the matter, and we look forward to continuing to provide our high-quality services to all of our customers, including the United States Government."
About XPO Logistics, Inc.
XPO Logistics, Inc. (NYSE: XPO) is a top ten global provider of cutting-edge supply chain solutions to the most successful companies in the world. The company is headquartered in Greenwich, Conn. www.xpo.com
About Estes Forwarding Worldwide LLC
Estes Forwarding Worldwide LLC provides domestic and international freight forwarding services. The company is headquartered in Richmond, Va. www.efwnow.com
XPO Logistics, Inc
Estes Forwarding Worldwide LLC
Tavio Headley, 1-203-930-1602 and Estes Express Lines
firstname.lastname@example.org Sarah Huddle, 1-804-248-0489
Gary Frantz, 1-415-819-6013
Darren McDermott, 1-212-333-3810